function X=obs_ss(x,alp, alpu, bet, pe, se, pt, st, deltak, etac, etal, etals, rs1, rs2, rs3, B1, B0, tauh, tauc)

H=x(1);
Hu=x(2);

R=(1/bet+deltak-1)/(1-tauh);
Ru=R*(1-tauh);
Hu_Ku=(Ru/(alpu*(1-tauc*st*pt)))^(1/(1-alpu));
Hm_Km=(R/(alp*(1-tauc)))^(1/(1-alp));
Km_Hm=1/Hm_Km;
Ku_Hu=1/Hu_Ku;
A=0;
B=0;
Ym_Hm=exp(A)*(Km_Hm)^(alp);
Yu_Hu=exp(B)*(Ku_Hu)^(alpu);
Wm=(1-alp)*Ym_Hm/(1+rs1+rs2);
Wu=((1-alpu)*(1-tauc*st*pt)*Yu_Hu)/(1+se*pe*(rs1+rs2+rs3)-rs3-tauc*(1+rs1+rs2)*st*pt);
Hm=H-Hu;
Km=Km_Hm*Hm;
Ku=Ku_Hu*Hu;
K=Ku+Km;
Iv=deltak*K; 
C=(1-tauh)*(Wm*Hm+R*Km)-Iv+(Wu*Hu+Ru*Ku)-rs3*(Wm*Hm+Wu*Hu);

X(1)=B0*H^etal-Wm*(1-tauh-rs3)*C^(-etac);
X(2)=B1*Hu^etals+B0*(H)^etal-Wu*(1-rs3)*C^(-etac);

X=X(:);
